In the recent video of Coin Bureau, analyst Mike Jenkins reveals the “hottest” Polkadot-based projects once the Parachain slot auctions start.
At the start of the video, the trader begins by talking about the “epic battle” taking place between the three cryptocurrencies in the smart contract space: Ethereum (ETH), Cardano (ADA) and Polkadot (DOT). While Charles Hoskinson’s project will only roll out its smart contract functionality with “Alonzo” in the course of the second quarter, Polkadot is already a bit further ahead.
Polkadot is a smart contract compatible blockchain that launched in May last year. Polkadot’s core blockchain is called the Relay Chain which uses a proof of stake consensus mechanism.
“The Relay Chain itself does not support smart contracts and only handles a handful of transaction types, namely those related to staking Polkadot gets its smart contract functionality from the additional blockchains which plug into the Relay Chain. Up to 100 parachains or parathreads can connect to the Relay Chain”.
Because of the limited space on the Relay Chain, Parachain Slot Auctions were invented to ensure these go to the most promising projects.
“Polkadot is ready to rumble and will soon begin to select the projects that will be connecting to its blockchain. There are nearly 400 projects competing for limited spots on Polkadot. And this has left many wondering which of these projects will be the lucky winners of Polkadot’s upcoming parachain slot auctions…The projects that secure these parachain slots are likely to see unprecedented gains when they go live”.
Pick 1: Acala Network
The first project on Coin Bureau’s list is Acala Network, which was launched back in October 2019 and is “most likely to secure a Parachain slot”.
In addition, Acala is one of the few projects that Gavin Wood follows on Twitter, according to Coin Bureau.
“But most importantly, Acala is looking to bring in some serious value and utility to the Polkadot ecosystem. Acala brands itself as Polkadot’s DeFi hub”.
Acala brands itself as Polkadot’s “DeFi hub” and consists of two core protocols. The first is a decentralized stablecoin protocol called ‘Honza’, and the second is a tokenized staking liquidity protocol called Homa, which makes staked DOT liquid for use in other DeFi applications.
However, investors are currently looking in vain for the ACA token, as it will only be issued once Acala has received a parachain slot. In total, there will only be 100 million ACA, with 11.62% going to participants in the parachain loan offering.
Pick 2: Phala Network
Jenkins’s sencond pick is Phala Network, a privacy preserving decentralized database with smart contract functionality. It uses trusted execution environments or TEEs to preserve user privacy.
PHA has an initial supply of 1 billion with an annual inflation rate of about 5% per year after the Phala main net launches. 9% of this supply will go to those participating in the Parachain Loan Offering.
“Unfortunately, Phala network does not seem to be as close to securing a parachain slot as Acala. This is because they’ve yet completed their pre-mainnet launch, called Darth Vader. Until that stage is completed, it is unlikely that Phala will rush to secure a parachain slot on Kusama or Polkadot”, shares by the analyst.
Pick 3: Litentry
Last on the list is Litentry. Litentry focuses on cross-chain decentralized identity management.
Litentry will make it possible to do things like gain gravitas in governance or build up a credit score that can be used to borrow with less collateral in a private and trustless manner.
“This could be biggest the biggest deal”, the crypto KOL comments as “It is ready for a parachain slot and has a token that is already trading”.